Naughty or Nice, Holiday Shoppers Plan to Shop Earlier, Spend Less

Consumers plan to shop earlier, spend less and give to fewer people this year. These were among the most telling findings in Performics’ latest monthly survey, the sixth in a series of nine.

The holiday season is nearly upon us, so September’s survey included questions about winter holiday shopping. The attitudes and plans of consumers uncovered by this latest survey can help marketers prepare for and, hopefully, thrive in the 2009 holiday season by adjusting strategies to better align with consumers’ plans for more frugal and conservative holiday gift giving.

Performics commissioned ROI Research to conduct these monthly surveys from April through December 2009 to collect data and document changes in consumers’ attitudes and behaviors in light of the current economy. September’s study was conducted over a two day period among 300 consumers who had made an online purchase in the last six months.

Gender Differences, Cut-back Lists Highlight Findings
Although the holiday season seems to start earlier every year, 2009 may take the cake:
· 29% of respondents intend to start shopping earlier this year
· One in five had already started their winter holiday shopping in mid-September
· An additional 20% intended to start in late September or October

September’s survey also uncovered some gender differences in holiday spending. Among the most significant differences, more women (35%) than men (19%) plan to start their winter holiday shopping earlier than last year. Men, on the other hand, are less likely to cut back and spend less than last year, compared to women; 66% of women but less than half of men (48%) plan to spend less. Women are also more likely to eliminate gift buying for people outside of the immediate family. While 37% of women said they would not be buying gifts for friends, co-workers or extended family, only 21% to 26% of men said the same.

Consumers planning to start their holiday shopping earlier may indicate a strong desire to find bargains, because very few consumers reported plans to spend more than in recent years. Most consumers (72%) planning to spend less indicated they would stick to that budget by purchasing fewer items overall; while 68% said they would spend less per item. More than half of all consumers surveyed will reduce their winter holiday spending in some way. In fact, overall, 60% plan to spend less and 30% plan to spend the same.

Consumers also reported scaling back their lists, opting to give gifts to fewer people this year. Two-thirds of consumers said they will not buy a gift this year for someone they have in past years. Friends, co-workers and extended family top the list of those being newly excluded from 2009 holiday gift giving as indicated above.

Five Questions for Teams

It’s clear that consumers plan to spend less and shop differently in the upcoming holiday season than they have in past years. But marketing teams can create strategies and implement tactics to succeed despite what could be a difficult season for many.

Chief marketers that talk with their teams about 2009 holiday preparedness should consider incorporating the following five questions into those discussions:
1. What do we know about our industry’s holiday promotional landscape, and how can we plan accordingly to best capitalize?
2. Can we improve odds for success by offering flexible payments or credit?
3. How are we leveraging products with low price points and high perceived value?
4. How much more aggressive can we become regarding free shipping and other calls to action?
5. Have we thought about Plan B and Plan C in case our initial strategy fails to produce the results we need?

Marketers can take steps to rank among the winners this holiday season with some informed planning and execution. Those who respond proactively to consumers’ changing behaviors and work with their teams to prepare and adjust can boost their odds of thriving in this less than ideal economy.

Michael Kahn (michael.kahn@performics.com) is senior vice president, marketing at Performics and a monthly contributor to Chief Marketer.